Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are.

A) $5,000.
B) $500.
C) $0.50.
D) $50.

Question

Jordan Calloway · Accepted Answer

Final Answer : A, Explanation :  Total fixed costs can be calculated by subtracting total variable costs from total costs. Total costs are ATC * Quantity = $200 * 100 = $20,000. Total variable costs are AVC * Quantity = $150 * 100 = $15,000. Therefore, total fixed costs = $20,000 - $15,000 = $5,000.

Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are.

A) $5,000.
B) $500.
C) $0.50.
D) $50.

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Learning Objectives

Related questions

Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are.A) $5,000.B) $500.C) $0.50.D) $50.

Definitions

Learning Objectives

Learning Objectives

Related questions

Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total fixed costs are.

A) $5,000.
B) $500.
C) $0.50.
D) $50.